Advanced Macroeconomic Methods
This module covers the theory for the solution and estimation of dynamic stochastic models that are widely used in all fields of macroeconomics. The module is structured in a way such that you will be exposed both to theory and the practical implementation of the methods taught.
It covers topics from approximation methods for stochastic non-linear macroeconomic models, such as linear and higher-order Taylor approximation as well as dynamic programming techniques. It also exposes students to the empirical evaluation of these models ranging from calibration to classical and Bayesian estimation methods.
The module applies the techniques to contemporary general equilibrium macroeconomic models designed for positive and policy analysis such as the New Keynesian model but also models that are designed to explain partial equilibrium behaviour such as consumer saving and industry investment.
Advanced Microeconomic Theory
This module examines central theoretical aspects from modern microeconomic theory, paying particular emphasis on game theory, imperfect competition and incomplete information.
Applied Behavioural Economics
The module will cover a selection of topics in applied behavioural economics where a substantial literature has already developed.
Possible areas include behavioural approaches to: labour economics, public economics, financial economics, development economics.
The module considers modern econometric techniques for modelling microeconomic data. It covers four broad econometric techniques:
- Robust standard errors and applications
- Discrete choices model
- Microeconometric policy evaluation methods for observational studies
- Instrumental variables and GMM estimation
Behavioural Economic Theory
The module explores the psychological underpinnings of economic behaviour and of recent theories in behavioural economics. Topics covered include:
- Introduction to behavioural economics
- Choice and risk
- Reference-dependence and loss aversion
- Choice and time
- Social preferences I: inequality aversion
- Social preferences II: reciprocity and psychological games
- Models of strategic thinking
Development Policy Analysis
Examples of types of policy issues addressed include:
- randomised controlled trials to evaluate policy interventions
- trade policy reform
- welfare impact of economic partnership agreements
- growth and innovation
- dealing with public debt
This module employs tools of microeconomic analysis to address topics central to development issues in low-income countries. One part concentrates on issues concerning household behaviour covering intrahousehold allocation, production, risk, migration and rural markets (especially credit), while the second part focuses on poverty and income distribution, covering measurement, income dynamics, and poverty reduction strategies.
Financial and Macroeconometrics
The module extends the coverage of advanced econometric modelling techniques and considers their application through the study of selected topics in finance and macroeconomics, developing familiarity and critical awareness of empirical research in these areas.
It covers techniques for the analysis of stationary ARMA processes, Vector Autoregressions (VARs), linear regression models, linear systems of simultaneous equations, cointegration, long-run structural VARs, forecasting, and models of changing volatility. The selected topics include the econometric analysis of business cycle fluctuations, wage, price and (un)employment determination, portfolio choice and stock market returns.
Economics of Corporate Finance
This module offers an introduction to the economics of corporate finance. It is designed to provide you with the basic theoretical background in this area that is necessary for any applied work. Emphasis is placed on the analysis of simple models and their applications.
The module covers a variety of topics with substantial time devoted for covering issues directly related to the financial needs of firms, such as capital structure, credit rationing and corporate governance.
The module also examines the role of financial intermediaries analysing bank failures and, consequently, the scope for banking regulations. The last part of the module looks closely at the relationship between the financial sector and the real economy thus offering the background for any applied work related to the link between financial development and economic fluctuations.
Economics of Household Finance
This module covers the central issues in the economics of household finance. Increasingly economists are interested in the decisions of consumers as well as the decisions of firms.
Household finance is the study of the behaviour of individuals and households in financial markets including those for secured (for example, mortgage) and unsecured (for example, credit card) lending and related economic models of consumption smoothing, liquidity constraints and household behaviour.
The module begins with the central topic of consumption smoothing, focusing on the role of credit markets and income risk in household behaviour. Later topics include financial literacy, self-control, mortgage market design, stock market participation and the regulation of consumer credit markets.
The module content includes come theoretical material but is mostly applied, with a focus on how large-scale individual level proprietary and survey datasets can be used to understand household financial behaviour.
Experimental Methods in Economics
This module covers the following:
- Foundation in the research method of modern laboratory experimentation
- Economics as an experimental subject
- Rationale for experiments, applications and practicalities, considered in the context of specific experiments and programmes of experiments
This module covers the following:
- International linkages in economics as a result of exchange rate movements, capital movements and spillovers
- Factors which determine the level of the exchange rate and trade effects
- International effects of monetary and fiscal policies
International Trade Theory
This module provides an overview of the theory of international trade, the theory of trade policy and each of their applications, utilising the techniques of general equilibrium theory and the theories of perfectly competitive and imperfectly competitive markets as appropriate. Recent developments in these areas will be emphasised.
Monetary Theory and Practice
This module covers monetary aspects of advanced macroeconomics and is suitable for students of mainstream economics, finance and international economics. It focuses on the theory and practice of central banking, monetary policy and control.
It covers concepts such as time inconsistency, the problem of inflation bias with solutions, credibility, transparency and accountability of monetary institutions, inflation targeting and price stability, the choice of instruments for monetary policy and their control, and finally monetary transmission. It combines some theory with evidence and practice.
Time Series Econometrics
The module covers fundamental properties of time series and various classes of stochastic processes. Issues in estimation and forecasting of time series models; concepts of contemporary interest to time series econometricians are also covered.
Trade Analysis and Policy
This module covers empirical models of international trade and several topics in trade policy. It discusses firms’ decision to export; the evaluation of export promotion policies; the link between globalisation and labour markets; the gravity model of international trade; free trade agreements; multinational firms; the political economy of trade policy.